US Airways Reports April Traffic
Thursday May 6, 4:50 pm ET
ARLINGTON, Va., May 6 /PRNewswire-FirstCall/ -- US Airways reported its
April 2004 passenger traffic today.
Mainline revenue passenger miles for April 2004 increased 13.8 percent on a 5.6 percent increase in available seat miles compared to April 2003. The
passenger load factor was 79.8 percent, which was the airline's highest
April load factor ever and the highest domestic load factor among the major
carriers this month. This represents a 5.7 percentage point increase
compared to April 2003.
For the first four months of 2004, mainline revenue passenger miles increased 11.6 percent on a 6.5 percent increase in available seat miles compared to the same period in 2003. The passenger load factor for the first four months of 2004 was 72.6 percent, a 3.3 percentage point increase compared to the same period in 2003.
The three wholly owned subsidiaries of US Airways Group, Inc. -- Allegheny
Airlines, Inc., Piedmont Airlines, Inc., and PSA, Inc., along with
MidAtlantic Airways -- reported an 28.5 percent increase in revenue passenger miles for April 2004 on 12.6 percent more capacity compared to April 2003. The passenger load factor was 61.0 percent, a 7.5 percentage point increase compared to April 2003.
For the first quarter of 2004, revenue passenger miles for the three wholly
owned US Airways Express carriers and MidAtlantic increased 10.4 percent on
a 2.1 percent increase in available seat miles compared to the first quarter
of 2003. The passenger load factor for the first three months of the year
was 53.9 percent, a 4 percentage point increase compared to the same period
in 2003.
Mainline system passenger unit revenue for April 2004 is expected to increase between 6.5 percent and 7.5 percent compared to April 2003.
US Airways ended the month of April by completing 99.6 percent of its scheduled departures.
"....Excluding the $250 million ATSB loan prepayment and other seasonal
changes in restricted cash, US Airways achieved breakeven cash performance
during the first quarter.... This is great news, loss narrows. It is getting
close to breakeven and cashflow positive. take that to mean that US achieved
operational breakeven with cash, which is good news going forward..."
Load factor rose 2.5 percentage points to 70.2 percent.
-- The company will begin installing boarding pass readers in 22 cities in
June.
-- US Airways' fuel position is 32.5 percent hedged for the second half of
2004 and 5 percent hedged for 2005. Hedges for the second quarter were sold
recently to lock-in a gain of $19 million.
-- The company's fourth quarter fuel expense was $87.74 cents and in 2004
will be 83 cents, reflecting the hedging benefit.
-- The company is going to approach non-labor stakeholders to lower unit
costs, which could include bond holders, EETC holders, Airports, etc.
-- Mainline aircraft utilization will increase from 10.0 to 11.5 hours per
day.
-- US Airways introduced the first phase of its new permanent and simplified
low fares called "GoFares®" today in Philadelphia, kicking off the largest
awareness campaign in company history.
Advance seat assignments * Pre-boarding for Preferred Dividend Miles
members
* A First Class cabin with the ability to upgrade from Coach Class on
many fares
* In-Flight Cafe on select flights
* Ability to earn frequent flier miles for travel to and from more than
700 worldwide destinations through US Airways' participation in the
Star
Alliance beginning May 4.
In regard to the Star alliance, as you know, total annual revenue is
expected to jump by $75 million. Membership in the alliance will expand US
Airways' network of daily nonstop fights from 187 destinations in North
America and Europe to daily nonstop flights bound for 755 destinations in
132 countries.
Bruce Lakefield, who took over as CEO last week, called the marketing tie
"an important and historic milestone for US Airways."
The Star link is expected to contribute roughly $75 million in annual
revenue to US Airways, the company estimated.
Southwest is reaching it's mature stage of it's live cycle. Rapid
advancement and equity growth is slowing to a crawl in the way of cost free
benefits to young and new hire employees. They are stepping outside of the
mold which has made them successful because they need USAirways to go out of
business to continue the growth cycle in order to postpone the day of
reckoning with their labor. Their labor is already paid better than
USAirways counterparts. Next will be retirement and benefits on their list.
Most of the disagreement between Southwest and the union revolves around pay
and other compensation. The union says management wants to give flight
attendants a 20 percent raise over 6.5 years although other employee groups
such as the pilots are getting raises of more than 30 percent over a shorter
period. The union also wants more overtime and holiday pay, and it wants its
members to be paid for time spent working when they are not in the air.
Like Kern, Hardage doesn't think that the union's fight for a new contract
and its advertising in Philadelphia will affect its launch here in May.
"It is unfortunate that there have been some clouding of our service message
in Philadelphia. And that is regrettable," she said. "But when we start
service in Philadelphia, everyone is going to focus on serving the
customer."
A recent report by Credit Suisse First Boston said the dispute could
"undermine" Southwest's good labor relations and hurt its stock value. The
TWU has also launched an advertising and public relations campaign that cost
the union "six-figures," although she won't provide specifics on cost. The
union has paid for billboard ads and plans print and radio ads. Union
members even handed out leaflets at Citizens Bank Park, where the
Philadelphia Phillies play baseball.
Dallas-based Southwest said cost per available seat mile, a key gauge of
operating costs, rose 4 percent, while revenue per seat mile rose 1 percent.
Dave Ciabattoni said: That's the 310 million dollar question for the first
quarter? While a certain LEC member was asking finical experts about the
expensing of the 250 million dollar loan payment, he should have asked a few
other questions. At least we know that the 250 million payment was not
included in the "other" category, as it was accounted for in the notes. That
begs your question! This is not something new, in the 4th Q 2003 our "other"
expenses were 306 million 16.6% of our total expenses. The average "other"
cost for the other Big 5 was 9.7% during 4th Q 2003. Hopefully by now,
everyone has seen the AW&S issue from MAR 1st. The other question that needs
to be asked is about US Airways Express capacity purchases.- 313 million
dollar expensed, we need a break down as to how much of this is guarantee
contract, how much is fuel, how much is for landing fees, how much is
facility charges, how much is for management fees, ETC.
Southwest had a business model of slow, deliberate growth and expansion.
Their lower debt enabled them to keep cost down and fares competitive.
JetBlue may be following the recipe more like that of Peoples Express.
JetBlue Chief Executive David Neeleman was so taken with the 100-seat
Embraer 190, he placed a $3 billion order before the jet ever left the
ground. Neeleman saw the midsized plane's potential for a fast-growing
airline intent on expanding its route system to smaller cities.
"We think there are almost 1,000 city pairs we can fly to," says Neeleman.
Low-fare carrier JetBlue CEO David Neeleman said the airline will hire about
2,000 employees as it adds airplanes to its fleet next year. JetBlue is
hiring another 700 workers this year and will add 22 new planes next year.
The airline will hire about 3,000 employees in 2006 when it adds 34
airplanes
Continental Airlines Inc. (NYSE:CAL - News) reported a first-quarter loss of
$124 million, about half its year-earlier loss, even as high jet fuel prices
bit hard into the bottom line. Continental's hopes of break-even results for
the year are rapidly fading...
Although these are heady times for low-cost carriers, few are thrilled with
their own performance. Part of the problem is the slow economic recovery,
part a rush by many to add too many flights too soon.
No matter how hard they try, said Arpey, who has already downsized
American's weak St. Louis hub among a host of other moves, carriers like
American will never get down to the same cost level as their low-cost
competitors. That's simply because they have costs newer carriers or those
who've gone through bankruptcy don't.
Thursday May 6, 4:50 pm ET
ARLINGTON, Va., May 6 /PRNewswire-FirstCall/ -- US Airways reported its
April 2004 passenger traffic today.
Mainline revenue passenger miles for April 2004 increased 13.8 percent on a 5.6 percent increase in available seat miles compared to April 2003. The
passenger load factor was 79.8 percent, which was the airline's highest
April load factor ever and the highest domestic load factor among the major
carriers this month. This represents a 5.7 percentage point increase
compared to April 2003.
For the first four months of 2004, mainline revenue passenger miles increased 11.6 percent on a 6.5 percent increase in available seat miles compared to the same period in 2003. The passenger load factor for the first four months of 2004 was 72.6 percent, a 3.3 percentage point increase compared to the same period in 2003.
The three wholly owned subsidiaries of US Airways Group, Inc. -- Allegheny
Airlines, Inc., Piedmont Airlines, Inc., and PSA, Inc., along with
MidAtlantic Airways -- reported an 28.5 percent increase in revenue passenger miles for April 2004 on 12.6 percent more capacity compared to April 2003. The passenger load factor was 61.0 percent, a 7.5 percentage point increase compared to April 2003.
For the first quarter of 2004, revenue passenger miles for the three wholly
owned US Airways Express carriers and MidAtlantic increased 10.4 percent on
a 2.1 percent increase in available seat miles compared to the first quarter
of 2003. The passenger load factor for the first three months of the year
was 53.9 percent, a 4 percentage point increase compared to the same period
in 2003.
Mainline system passenger unit revenue for April 2004 is expected to increase between 6.5 percent and 7.5 percent compared to April 2003.
US Airways ended the month of April by completing 99.6 percent of its scheduled departures.
"....Excluding the $250 million ATSB loan prepayment and other seasonal
changes in restricted cash, US Airways achieved breakeven cash performance
during the first quarter.... This is great news, loss narrows. It is getting
close to breakeven and cashflow positive. take that to mean that US achieved
operational breakeven with cash, which is good news going forward..."
Load factor rose 2.5 percentage points to 70.2 percent.
-- The company will begin installing boarding pass readers in 22 cities in
June.
-- US Airways' fuel position is 32.5 percent hedged for the second half of
2004 and 5 percent hedged for 2005. Hedges for the second quarter were sold
recently to lock-in a gain of $19 million.
-- The company's fourth quarter fuel expense was $87.74 cents and in 2004
will be 83 cents, reflecting the hedging benefit.
-- The company is going to approach non-labor stakeholders to lower unit
costs, which could include bond holders, EETC holders, Airports, etc.
-- Mainline aircraft utilization will increase from 10.0 to 11.5 hours per
day.
-- US Airways introduced the first phase of its new permanent and simplified
low fares called "GoFares®" today in Philadelphia, kicking off the largest
awareness campaign in company history.
Advance seat assignments * Pre-boarding for Preferred Dividend Miles
members
* A First Class cabin with the ability to upgrade from Coach Class on
many fares
* In-Flight Cafe on select flights
* Ability to earn frequent flier miles for travel to and from more than
700 worldwide destinations through US Airways' participation in the
Star
Alliance beginning May 4.
In regard to the Star alliance, as you know, total annual revenue is
expected to jump by $75 million. Membership in the alliance will expand US
Airways' network of daily nonstop fights from 187 destinations in North
America and Europe to daily nonstop flights bound for 755 destinations in
132 countries.
Bruce Lakefield, who took over as CEO last week, called the marketing tie
"an important and historic milestone for US Airways."
The Star link is expected to contribute roughly $75 million in annual
revenue to US Airways, the company estimated.
Southwest is reaching it's mature stage of it's live cycle. Rapid
advancement and equity growth is slowing to a crawl in the way of cost free
benefits to young and new hire employees. They are stepping outside of the
mold which has made them successful because they need USAirways to go out of
business to continue the growth cycle in order to postpone the day of
reckoning with their labor. Their labor is already paid better than
USAirways counterparts. Next will be retirement and benefits on their list.
Most of the disagreement between Southwest and the union revolves around pay
and other compensation. The union says management wants to give flight
attendants a 20 percent raise over 6.5 years although other employee groups
such as the pilots are getting raises of more than 30 percent over a shorter
period. The union also wants more overtime and holiday pay, and it wants its
members to be paid for time spent working when they are not in the air.
Like Kern, Hardage doesn't think that the union's fight for a new contract
and its advertising in Philadelphia will affect its launch here in May.
"It is unfortunate that there have been some clouding of our service message
in Philadelphia. And that is regrettable," she said. "But when we start
service in Philadelphia, everyone is going to focus on serving the
customer."
A recent report by Credit Suisse First Boston said the dispute could
"undermine" Southwest's good labor relations and hurt its stock value. The
TWU has also launched an advertising and public relations campaign that cost
the union "six-figures," although she won't provide specifics on cost. The
union has paid for billboard ads and plans print and radio ads. Union
members even handed out leaflets at Citizens Bank Park, where the
Philadelphia Phillies play baseball.
Dallas-based Southwest said cost per available seat mile, a key gauge of
operating costs, rose 4 percent, while revenue per seat mile rose 1 percent.
Dave Ciabattoni said: That's the 310 million dollar question for the first
quarter? While a certain LEC member was asking finical experts about the
expensing of the 250 million dollar loan payment, he should have asked a few
other questions. At least we know that the 250 million payment was not
included in the "other" category, as it was accounted for in the notes. That
begs your question! This is not something new, in the 4th Q 2003 our "other"
expenses were 306 million 16.6% of our total expenses. The average "other"
cost for the other Big 5 was 9.7% during 4th Q 2003. Hopefully by now,
everyone has seen the AW&S issue from MAR 1st. The other question that needs
to be asked is about US Airways Express capacity purchases.- 313 million
dollar expensed, we need a break down as to how much of this is guarantee
contract, how much is fuel, how much is for landing fees, how much is
facility charges, how much is for management fees, ETC.
Southwest had a business model of slow, deliberate growth and expansion.
Their lower debt enabled them to keep cost down and fares competitive.
JetBlue may be following the recipe more like that of Peoples Express.
JetBlue Chief Executive David Neeleman was so taken with the 100-seat
Embraer 190, he placed a $3 billion order before the jet ever left the
ground. Neeleman saw the midsized plane's potential for a fast-growing
airline intent on expanding its route system to smaller cities.
"We think there are almost 1,000 city pairs we can fly to," says Neeleman.
Low-fare carrier JetBlue CEO David Neeleman said the airline will hire about
2,000 employees as it adds airplanes to its fleet next year. JetBlue is
hiring another 700 workers this year and will add 22 new planes next year.
The airline will hire about 3,000 employees in 2006 when it adds 34
airplanes
Continental Airlines Inc. (NYSE:CAL - News) reported a first-quarter loss of
$124 million, about half its year-earlier loss, even as high jet fuel prices
bit hard into the bottom line. Continental's hopes of break-even results for
the year are rapidly fading...
Although these are heady times for low-cost carriers, few are thrilled with
their own performance. Part of the problem is the slow economic recovery,
part a rush by many to add too many flights too soon.
No matter how hard they try, said Arpey, who has already downsized
American's weak St. Louis hub among a host of other moves, carriers like
American will never get down to the same cost level as their low-cost
competitors. That's simply because they have costs newer carriers or those
who've gone through bankruptcy don't.
h34r:
